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Estimation and testing of household labour demand models: Evidence from Spain

Author

Listed:
  • Laura Crespo

    (CEMFI)

Abstract

This paper provides an empirical contribution to the debate about the choice of the most appropriate model to analyse the labour supply decisions of multiperson households. I propose a parametric specification for couples’ labour supply which allows for testing both the unitary model and the collective model. I also test the distribution factor independence of outcomes using differences in the education level between spouses as a distribution factor. The results based on Spanish data from the ECHP show that household labour supply outcomes are distribution factor dependent and that neither the unitary model nor the collective one fits these data.

Suggested Citation

  • Laura Crespo, 2009. "Estimation and testing of household labour demand models: Evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 33(2), pages 303-335, May.
    • Handle: RePEc:iec:inveco:v:33:y:2009:i:2:p:303-335
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    Citations

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    Cited by:

    1. Campaña, Juan Carlos & Gimenez-Nadal, José Ignacio & Molina, José Alberto, 2018. "Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?," IZA Discussion Papers 11695, Institute of Labor Economics (IZA).
    2. Eleftherios Giovanis & Oznur Ozdamar, 2018. "Empirical Application of Collective Household Labour Supply Model in Iraq," Working Papers 1180, Economic Research Forum, revised 19 Apr 2018.
    3. Olivier Donni & Eleonora Matteazzi, 2018. "Collective decisions, household production, and labor force participation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(7), pages 1064-1080, November.
    4. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    5. Belloc, Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "How does intrahousehold bargaining power impact labor supply? European cross-country evidence (2004-2019)," GLO Discussion Paper Series 1132, Global Labor Organization (GLO).
    6. Bautista Lacambra, Sergio, 2020. "Household labor supply: Collective results for certain developed countries," MPRA Paper 101514, University Library of Munich, Germany.
    7. Eleftherios Giovanis & Oznur Ozdamar, 2019. "A Collective Household Labour Supply Model with Disability: Evidence from Iraq," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 209-225, June.

    More about this item

    Keywords

    Household labour supply behaviour; collective model; unitary model.;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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